NOTICE CONCERNING TEMPORARY EXEMPTION FROM INCOME TAX ON RENTALPAID FOR CHARTER OF FOREIGN CONTAINERS USED IN INTERNATIONAL TRANSPORTA-TION

NOTICE CONCERNING TEMPORARY EXEMPTION FROM INCOME TAX ON RENTALPAID FOR CHARTER OF FOREIGN CONTAINERS USED IN INTERNATIONAL TRANSPORTA-TION (State Administration of Taxation: 11 March 1993 Guo Shui Fa[1993] No. 049) Whole Doc.

To tax bureaus of various provinces, autonomous regions and municipalities, to tax bureaus of various cities with separate planning and to sub-bureaus of offshore oil tax administrative bureaus: Recently, reports from some regions say that some domestic shipping enterprises have chartered containers from abroad and used them in international transportation, after studying the issue concerning whether or not income tax shall be levied on the rental incomes gained by foreign companies from the lease of containers, the matter is hereby clarified as follows: Foreign companies which have rental incomes gained from the lease of containers to enterprises within China shall pay enterprise income tax in accordance with the stipulations of The Income Tax Law on enterprise with foreign investment and Foreign Enterprises. Considering that actual conditions in China where the existing number of containers cannot meet the needs and in order to facilitate the development of China's container ocean-shipping service, income tax is temporarily exempt from the rental incomes gained by foreign companies and enterprises which 1 ease containers to Chinese companies and enterprises for use in international transportation.

ave rental incomes gained from the lease of containers to enterprises within China shall pay enterprise income tax in accordance with the stipulations of The Income Tax Law on enterprise with foreign investment and Foreign Enterprises. Considering that actual conditions in China where the existing number of containers cannot meet the needs and in order to facilitate the development of China's container ocean-shipping service, income tax is temporarily exempt from the rental incomes gained by foreign companies and enterprises which 1 ease containers to Chinese companies and enterprises for use in international transportation.